Credit risk insurances are increasingly looked for in Romania, according to insurance companies’ representatives. This trend is explained by the lengthening of the payment delays. However, with greater risks come pricier insurances: increasing demand for this type of insurance has also increased their costs.
There’s not only a problem of costs, but also of time lost. The procedures to be followed in order to get insured are more rigorous than previous years. ”There are some businesses, such as, for example, the construction industry, which we cannot bid for,“ Marin completed. Still, there are alternatives to credit insurance. One of them is factoring, a financial transaction whereby a business sells its accounts receivable to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business.











